4/10 homes will be subject to higher Stamp Duty costs by 2018
The Taxpayers Alliance and Savills have conducted some research and concluded that 281,590 homes across the UK will be subject to a Stamp Duty fee of £7,500 and above. The actual amount of houses that were subject to those levels of Stamp Duty in 2012 were 183,000 which shows the level at which the property market is predicted to rise.
This may be bad news for first time buyers as they could be discouraged from making their first steps onto the property ladder and it could also spell bad news for families too. It could similarly deter elderly people from downsizing and make it hard to move to a new area for a new job.
Rising house prices mean that more Stamp Duty is paid which is good news for the Government but not such good news for the buyer. The Taxpayers Alliance are urgently calling for the Government to cut Stamp Duty before the situation worsens and the predictions become a reality. When the Government was asked about this, a Treasury spokesman replied. ‘We believe there are more effective ways to support the housing market such as improving access to finance.’ He also stated that reducing the Stamp Duty costs would mean putting taxes up elsewhere because of the ‘significant costs to the Exchequer’.
The report revealed that a huge 3.5 homes in the South East will be subject to the Stamp Duty rate of 3% or more as well as 1/6 properties subject to the same Stamp Duty rate by 2018. These findings are based on the current rate of property price growth over the next five years conducted by Savills. There is a possibility that the Governments schemes such as the Help to Buy scheme has made it easier to secure a mortgage therefore, boosted the property market.
Amanda McGovern, Pali Ltd
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